According to UBI Research, rising memory costs are forcing smartphone manufacturers to cut expenses on other components. This trend is leading to a downgrade in display technology for several mobile devices.
By the second half of 2026, memory costs are expected to account for approximately 40% of a smartphone's total bill of materials. This figure is roughly six times higher than the cost of the display panel, driven by memory price hikes and declining OLED production costs.
To manage costs, some Chinese smartphone manufacturers have started using LTPS OLED panels in certain premium models instead of more advanced alternatives. This shift allows companies to save several dollars per unit, while top-tier models continue to utilize LTPO OLED technology.
Manufacturers are also implementing additional cost-saving measures, such as reducing display refresh rates. Furthermore, mid-range smartphones are increasingly seeing downgrades in camera specifications and chipset platforms to offset the rising price of memory.
